DOJJ(002798)2024-08-23 10:39Financial Performance - Revenue for the reporting period was RMB 1.39 billion, a decrease of 21.73% compared to the same period last year[11] - Net profit attributable to shareholders of the listed company was RMB -55.07 million, an improvement of 9.07% compared to the same period last year[11] - Operating cash flow was RMB 6.37 million, a significant decrease of 97.85% compared to the same period last year[11] - Total assets at the end of the reporting period were RMB 6.37 billion, a decrease of 3.35% compared to the end of the previous year[11] - The weighted average return on equity was -2.57%, a decrease of 0.41 percentage points compared to the same period last year[11] - Revenue for the first half of 2024 was 1.39 billion yuan, a year-on-year decrease of 21.73%, primarily due to a decline in engineering channel revenue[22] - Net profit attributable to shareholders of the listed company was a loss of 55.0654 million yuan, a reduction of 5.4893 million yuan compared to the previous year, mainly due to financial expenses of 40.78 million yuan from convertible bonds[22] - Revenue for the reporting period was 1.39 billion yuan, a year-on-year decrease of 21.73%, primarily due to a decline in engineering channel sales[32] - Operating costs decreased by 21.72% to 1.08 billion yuan, driven by the reduction in revenue[32] - Sales expenses dropped by 29.82% to 134.21 million yuan, mainly due to reduced engineering channel revenue[32] - R&D investment increased slightly by 1.84% to 68.16 million yuan, with no significant changes[32] - Net cash flow from operating activities plummeted by 97.85% to 6.37 million yuan, primarily due to a decrease in cash received from sales and services[32] - Manufacturing accounted for 99.19% of total revenue, with a year-on-year decrease of 21.79%[33] - Ceramic wall and floor tiles revenue decreased by 26.50% to 1.06 billion yuan, representing 76.63% of total revenue[33] - Revenue from the South China region fell by 21.08% to 244.47 million yuan, accounting for 17.59% of total revenue[34] - The company's gross profit margin for manufacturing was 21.77%, a slight decrease of 0.10% compared to the previous year[34] - Total revenue for the first half of 2024 decreased to 1,389,566,845.35 yuan, a decline of 21.7% compared to 1,775,279,340.75 yuan in the same period of 2023[141] - Net profit for the first half of 2024 was -55,187,195.38 yuan, an improvement from -60,896,637.78 yuan in the same period of 2023[141] - Operating costs for the first half of 2024 were 1,463,048,599.42 yuan, a decrease of 20.4% compared to 1,837,106,002.05 yuan in the same period of 2023[141] - Sales expenses for the first half of 2024 decreased to 134,213,967.01 yuan, down 29.8% from 191,238,599.63 yuan in the same period of 2023[141] - R&D expenses for the first half of 2024 increased slightly to 68,159,007.00 yuan, up 1.8% from 66,927,615.77 yuan in the same period of 2023[141] - Basic earnings per share for the first half of 2024 improved to -0.1504 yuan, compared to -0.1635 yuan in the same period of 2023[142] - Net profit for the first half of 2024 was -44,617,336.98 RMB, a decrease compared to -31,549,579.96 RMB in the same period last year[144] - Operating cash flow for the first half of 2024 was 6,373,849.83 RMB, a significant drop from 296,328,961.86 RMB in the same period last year[146] - Cash received from sales of goods and services in the first half of 2024 was 1,554,402,400.08 RMB, down from 2,286,948,817.97 RMB in the same period last year[145] - Cash paid for goods and services in the first half of 2024 was 1,120,117,516.83 RMB, a decrease from 1,534,406,568.49 RMB in the same period last year[145] - Cash received from financing activities in the first half of 2024 was 396,445,729.17 RMB, down from 671,683,347.73 RMB in the same period last year[146] - Cash paid for employee compensation in the first half of 2024 was 255,417,793.71 RMB, slightly higher than 244,093,187.55 RMB in the same period last year[146] - Cash received from tax refunds in the first half of 2024 was 10,080,000.00 RMB, down from 16,846,857.23 RMB in the same period last year[145] - Cash paid for taxes in the first half of 2024 was 72,702,747.41 RMB, a decrease from 76,999,378.53 RMB in the same period last year[146] - Cash received from investment activities in the first half of 2024 was 14,489,684.20 RMB, significantly higher than 103,294.00 RMB in the same period last year[146] - Cash paid for dividends, profits, and interest in the first half of 2024 was 21,571,279.92 RMB, down from 38,078,430.28 RMB in the same period last year[146] - Operating cash flow for the first half of 2024 was negative at -49.79 million yuan, compared to -25.83 million yuan in the same period last year[148] - Investment cash flow for the first half of 2024 was negative at -7.44 million yuan, a significant decline from 19.16 million yuan in the same period last year[148] - Financing cash flow for the first half of 2024 was negative at -27.88 million yuan, compared to a positive 27.18 million yuan in the same period last year[148] - Total cash and cash equivalents decreased by 85.11 million yuan in the first half of 2024, compared to an increase of 20.51 million yuan in the same period last year[148] - The company's total owner's equity decreased by 80.09 million yuan in the first half of 2024, mainly due to a comprehensive income loss of 55.07 million yuan[149] - The company's undistributed profit decreased by 55.07 million yuan in the first half of 2024, contributing to the overall decline in owner's equity[149] - The company's capital reserve increased slightly by 123,084.35 yuan in the first half of 2024[149] - The company's total assets decreased by 61.03 million yuan in the first half of 2024, mainly due to a decrease in undistributed profit of 60.55 million yuan[152] - Comprehensive income for the first half of 2024 was a loss of RMB 60,554,780.26[153] - Total owner's equity at the end of the period was RMB 2,776,256,902.76[154] - The company's total owner's equity at the beginning of the period was RMB 2,230,885,844.96[156] - The change in owner's equity during the period was a decrease of RMB 69,516,428.14[156] - The company's comprehensive income for the period was a loss of RMB 44,617,336.98[156] - Owner's equity decreased by RMB 24,899,091.16 due to owner's investment and capital reduction[156] - Other equity tool holders invested RMB 110,455.28 during the period[156] - Other items led to a decrease in owner's equity of RMB 25,009,546.44[156] - The company's total owner's equity at the end of the period was RMB 2,829,365,248.18, a decrease of RMB 31,521,373.91 compared to the beginning of the period[157][158] - The company's comprehensive income for the period was a loss of RMB 31,549,579.96[157] Industry and Market Conditions - The real estate development investment in China decreased by 10.1% in the first half of the year, impacting the demand for building ceramics and bathroom products[16] - New commercial housing sales area in China decreased by 19.0% in the first half of the year, further affecting the industry's demand[16] - The industry is undergoing a deep adjustment and integration process, with resources expected to further concentrate towards leading companies[16] - The government's policies to stabilize the real estate industry and promote diversified improvement needs are expected to boost industry confidence[16] Product and Innovation - The company's products include smart toilets, sanitary ceramics, and architectural ceramics, with specific focus on products like "China Jade" and "Rock Panel"[4] - The company's "China Jade" product line includes various specifications and finishes such as polished, soft polished, and ultra-sensory eggshell glaze[4] - The company's "Rock Panel" is a high-tech material produced under high pressure and temperature, suitable for cutting, drilling, and grinding[4] - The company's lightweight curtain wall ceramic panels are used for exterior wall dry hanging and interior walls, offering lightweight, high strength, and thermal insulation properties[5] - The company's landscape thick bricks are designed for outdoor use, with rough, anti-slip surfaces and thicknesses ranging from 13-22mm[5] - The company's laboratory ceramic countertops are available in various colors and shapes, with specific dimensions for different applications[5] - The company is focusing on product and technological innovation, emphasizing environmental protection, energy efficiency, intelligence, and integration[16] - The company continues to innovate in product design and functionality, particularly in the high-end market with its "Chinese Jade" tile series[23] - Oceano's "China Jade" product line was fully upgraded in 2024, leveraging over 20 years of expertise in jade tile products[27] - The company's sanitary ware division focuses on smart product development, with the M40 silent flush smart toilet winning the "Annual Smart Toilet Recommended Brand" award[25] - Oceano's three production bases fully adopted the "Foshan Standard" in June 2023, becoming one of the first companies to enter the Foshan Standard directory[27] - The company's tile production quality control standards exceed the EU EN176 standard requirements[27] - Oceano won three major awards at the 20th Ceramic Sanitary Ware Industry Newcomer Awards in 2024, including the "Outstanding Original IP Product Award"[25] - The company's sanitary ware brand "Dongpeng" was awarded the "China Building Sanitary Ceramics Quality Gold Award" for its Musen bathroom cabinet[25] Subsidiaries and Operations - The company's subsidiaries include Sichuan Diou, Foshan Oshino, Chengdu Acrylic Board, and Chongqing Emperor[4] - The company has six production bases for building ceramics and sanitary ware in Chengdu, Chongqing, Foshan, Guangxi, and Jingdezhen[19] - Oshino holds over 200 core patents in tile technology and has a globally advanced R&D center for building ceramics[17] - Core subsidiary Oshino achieved a turnaround in the first half of the year[22] - The company focuses on retail distribution and has upgraded store images in first and second-tier cities for Oshino dealers[22] - The company has strengthened internal lean management, optimizing procurement and production costs to maintain stable gross profit margins[23] - The company has increased control over accounts receivable, reducing net accounts receivable through cash or property settlements[23] - The company has developed a new retail model integrating online and offline channels, leveraging brand influence and new media platforms[22] - The company's tile brand "Oceano" has over 1,400 dealers and nearly 4,000 terminal stores in China as of June 2024[29] - The company's sanitary ware brand "Dongpeng" has nearly 1,000 dealer stores nationwide, with a strong presence in Southwest and East China[29] - The company added 42 new patents in the first half of 2024, including 14 invention patents, 21 utility model patents, and 7 design patents[28] - As of June 30, 2024, the company holds 586 valid patents, including 191 invention patents, 202 utility model patents, and 193 design patents[28] Environmental and Regulatory Compliance - The company and its subsidiaries are subject to 21 major environmental protection laws and industry standards, including the "Emission Permit Application and Issuance Technical Specification for Furniture Manufacturing Industry (HJ1027-2019)" and the "Ceramic Industry Air Pollutant Emission Standard (DB44/2160-2019)"[62] - The company's subsidiaries, Foshan Oshino Ceramics Co., Ltd. and Guangxi Oshino Ceramics Co., Ltd., are also subject to multiple environmental protection laws and standards, such as the "Environmental Protection Law of the People's Republic of China" and the "Air Pollution Prevention and Control Law of the People's Republic of China"[62] - The company has complied with the "Ceramic Industry Pollutant Emission Standard (GB 25464-2010)" since October 1, 2010[14] - The "Pollution Discharge Permit Management Measures" were implemented on July 1, 2024[18] - The "Hazardous Waste Storage Pollution Control Standard (GB18597-2023)" was enforced on July 1, 2023[27] - The "General Industrial Solid Waste Storage and Landfill Pollution Control Standard (GB 18599-2020)" has been in effect since July 1, 2021[28] - The "Ceramic Industry Waste Gas Treatment Engineering Technical Specification (HJ 1092-2020)" was implemented on January 14, 2020[34] - The "Industrial Enterprise Design Health Standard (GBZ1-2010)" has been effective since August 1, 2010[35] - The "Environmental Protection Law of the People's Republic of China" has been in force since January 1, 2015[1] - The "Atmospheric Pollution Prevention and Control Law of the People's Republic of China" was revised on October 26, 2018[3] - The "Solid Waste Pollution Prevention and Control Law of the People's Republic of China" was updated on September 1, 2020[7] - The "Environmental Protection Tax Law of the People's Republic of China" has been effective since January 1, 2015[9] - The company obtained a pollutant discharge permit from the Chengdu Ecological Environment Bureau on June 14, 2022, with the permit number 915120002068726561001U[64] - The company received a license for urban sewage discharge into the drainage network from the Chengdu Eastern New District Management Committee on September 25, 2023, with the license number 川 A03 证字第 202324 号[64] - The company's Foshan Oshino Ceramics Co., Ltd. received approval for the environmental impact report of the construction project from the Sanshui Environmental Protection Bureau on October 6, 1999, with the approval number 三环建复（1999）061号[64] - The company's Foshan Oshino Ceramics Co., Ltd. completed the acceptance of the first phase project (4 roller kilns, 4 spray towers) on June 6, 2005, with the acceptance number 三环验（2005）93号[64] - The company's Foshan Oshino Ceramics Co., Ltd. received approval for the environmental impact report of the renovation and expansion project from the Sanshui Environmental Protection Bureau on April 27, 2007, with the approval number 三环复（2007）91号[64] - The company's Foshan Oshino Ceramics Co., Ltd. received approval for the environmental impact report of the technical transformation construction project from the Sanshui Environmental Protection Bureau on March 21, 2008, with the approval number 三环复[2008]59号[64] - The company's Foshan Oshino Ceramics Co., Ltd. completed the acceptance of the technical transformation construction project on July 11, 2008, with the acceptance number 三环验[2008]218号[64] - The company's Foshan Oshino Ceramics Co., Ltd. completed the acceptance of the fifth kiln production line project on September 25, 2008, with the acceptance number 三环验[2008]285号[64] - The company's Foshan Oshino Ceramics Co., Ltd. received preliminary approval for the environmental impact report of the IPO-funded new R&D center project from the Sanshui Environmental Protection Bureau on September 18, 2008, with the approval number 三环复[2008]331号[64] - The company's IPO-funded project for 6 million square meters of environmentally friendly thin polished tiles received initial environmental approval in September 2008[65] - The IPO-funded project for 2 million square meters of lightweight, high-strength, energy-saving new wall materials received initial environmental approval in July 2008[65] - The 6 million square meters per year ceramic product expansion project received environmental approval in July 2010[65] - The first phase of the 6 million square meters per year ceramic product expansion project passed environmental protection acceptance in September 2015[65] - The 50 million square meters per year high-end wall and floor tile intelligent production line project in Guangxi received environmental approval in January 2018[65] - The first phase of the 50 million square meters per year high-end wall and floor tile intelligent production line project in Guangxi passed solid waste environmental protection facility acceptance in December 2019[65] - The 300 million square meters per year high-end antique brick production project in Jingdezhen passed environmental protection acceptance in October 2016[65] - The 1.3 billion square meters per year high-end wall and floor tile intelligent production line project in Jingdezhen received environmental approval in May 2020[65] - The 33 million square meters per year high-end ceramic wall and floor tile production line capacity increase project in Jingdezhen received environmental approval in June 2024[65